SUSTAINABILITY REPORT

ENVIRONMENT

               

This section provides information about our contribution and progress to protecting the environment and conserving natural resources.

  • Greenhouse gas emissions

    HMBV is committed to continuously reducing its greenhouse gas (GHG) emissions. GHG emissions are divided into three categories – Scope 1 (gas emissions), Scope 2 (energy emissions) and Scope 3 (waste generated). HMBV has set quantitative targets for its GHG emissions in each category. 

    GHG emissions
    unitFY2022FY2023
    Total GHG emissions CO2 equivalent T 80.792 124.170


    Over fiscal year 2023, there has been a notable increase in total greenhouse gas emissions. This increase is primarily due to two factors. Firstly, HMBV experienced a substantial increase in sales during fiscal year 2023, which directly led to a rise in carbon emissions. Secondly, HMBV enhanced its data collection methods compared to the prior year. In fiscal year 2023, the company collected more detailed and comprehensive data than was previously available. This enabled HMBV to calculate and report more CO2 emissions and also more accurately.

    Scope 1: Gas emissions (CSRD E1, Disclosure requirement 13)

    HMBV has set a specific goal for reducing gas emissions, aiming for a decrease in Scope 1 emissions of 5% per year. 

    Scope 1
    unitFY2021FY2022FY2023
    Gross Scope 1 GHG emissions in metric tons of CO2 equivalent CO2 equivalent T 507,2 389,6 477,5


    In fiscal year 2023, HMBV witnessed a significant increase in Scope 1 emissions compared to fiscal year 2022. This can be attributed in part to the enhanced precision in data collection regarding fuel consumption for all leased vehicles. Additionally, despite a reduction in gas consumption, HMBV's CO2 emissions have increased, according to the gas supplier. Consequently, the company fell short of its targeted 5% annual reduction in Scope 1 emissions. Nevertheless, when measured against every 1 million euros in sales, the intensity of Scope 1 emissions remained relatively stable, due to the growth in sales.

    Scope 2: Energy emissions (CSRD E1, Disclosure requirement 14)

    HMBV has set a specific goal for reducing energy emissions, aiming for a decrease in Scope 2 emissions of 2% per year.

    Scope 2
    unitFY2021FY2022FY2023
    Gross Scope 2 GHG emissions CO2 equivalent T 493,8 545,4 453,9


    In fiscal year 2023, HMBV saw a significant reduction in Scope 2 emissions, largely due to the increased use of renewable energy sources. Despite this shift towards greener energy, the company's overall energy consumption did not decrease when compared to 2022. Consequently, the emissions intensity per 1 million euros in sales also decreased significantly. This progress enabled HMBV to meet its target of achieving a 2% annual reduction in Scope 2 emissions.


    Scope 3: Waste generated in operations (CSRD E1, Disclosure requirement 15)

    Scope 3
    unitFY2022FY2023
    Gross scope 3 GHG emissions CO2 equivalent T 79.857,3 123.238,1

     

    Emissions from the production of products purchased

    This category includes all upstream emissions from the production of products purchased or acquired by the reporting company in the reporting year. Emissions from the production of products purchased belons to category 1 in scope 3.

    Category 1 Scope 3 experienced a significant increase in fiscal 2023 compared to fiscal 2022. This increase can be attributed to the improvement in data collection related to material purchases. This improvement enabled HMBV to accurately calculate CO2 emissions from spare parts and system components in fiscal 2023.

    Emissions from the production of capital goods purchased
    This category includes all upstream emissions from the production of capital goods purchased or acquired by the reporting company in the reporting year. Emissions from the production of capital goods purchased belongs to category 2 in scope 3.



    Category 2 scope 3 has decreased compared to 2022, this is because the capital goods purchased weigh less in total than the capital goods purchased in 2022. The weight is multiplied by the emission factor per kg in CO2 of the material, in this case that is stainless steel.

    Emissions related to the production of fuels and energy purchased and consumed
    Category 3 scope 3 does not appy to HMBV as no fuels are used in production.

    Transportation and distribution services purchased by the reporting company
    This category includes CO2 emissions from third-party transportation and distribution services purchased by the reporting company in the reporting year. Third-party transportation and distribution services purchased by the reporting company belongs to category 4 in scope 3.



    Category 4 Scope 3 experienced an increase in fiscal 2023 compared to fiscal 2022. This increase can be attributed to improved data collection regarding third-party transportation and distribution services. This allowed Hosokawa Mircron B.V. to calculate emissions not only from transported machinery. But also of spare parts sent to customers.

    Waste generated in operations
    Category 5 in scope 3 includes emissions from third-party disposal and treatment of waste generated in the reporting company's owned or controlled operations in the reporting year.

     

    * Tracking of LDPE foil waste started in June 2022. Therefore, the waste for quarters 1 and 2 of 2022 was extracted from the known data of quarters 3 and 4 of 2022. From quarters 3 and 4, the average was calculated and used as input for quarters 1 and 2 of 2022 to arrive at the above figure in kg.

    Transportation of employees for business-related activities
    This category includes emissions from the transportation of employees for business-related activities in vehicles owned or operated by third parties, such as aircraft, trains, buses, and passenger cars. Business travel falls under category 6 in scope 3. Regarding business travel HMBV has set the following goal: 'All business cars shall be 100% electric, hydrogen or synthetic by 2030'.



    Category 6 Scope 3 experienced a significant increase in fiscal 2023 compared to fiscal 2022. This increase can be attributed to improved data collection related to HMBV's business travel. This allowed HMBV to also calculate CO2 emissions from business-related train and car travel compared to 2022.

    Emissions from employee commuting
    This category includes emissions from the transportation of employees between their homes and their worksites. Emissions from employee commuting belongs to category 7 in scope 3.



    CO2 emissions from commuting in category 7 scope 3 increased significantly in 2023 compared to 2022. Because HMBV was affected by the COVID-19 virus in 2022, this required HMBV employees to work more from home.

    Emissions from the operation of assets that are leased
    Category 8 in scope 3 includes emissions from the operation of assets that are leased by the reporting company in the reporting year and not already included in the reporting company's scope 1 or scope 2 inventories. This category is applicable only to companies that operate leased assets. HMBV does not operates in leased assets.

    Transportation of sold products in vehicles not owned or controlled by the reporting company
    This category includes emissions that occur in the reporting year from transportation and distribution of sold products in vehicles and facilities not owned or controlled by the reporting company.



    Category 4 Scope 3 experienced an increase in fiscal 2023 compared to fiscal 2022. This increase can be attributed to improved data collection regarding third-party outbound transportation and distribution services. This allowed HMBV to calculate emissions not only from transported machinery. But also of spare parts sent to customers.

    Emissions from processing of sold intermediate products by third parties
    Category 10 in scope 3 includes emissions from processing of sold intermediate products by third parties (e.g., manufacturers) subsequent to sale by the reporting company. Intermediate products are products that require further processing, transformation, or inclusion in another product before use.



    Category 10 scope 3 has decreased significantly compared to 2022, this is because HMBV has outsourced less work. The outsourced weight is multiplied by the emission factor per kg in CO2 of the material, in this case stainless steel. 453,5

    Emissions from the use of goods
    This category includes emissions from the use of goods and services sold by the reporting company in the reporting year. A reporting company's scope 3 emissions from use of sold products include the scope 1 and scope 2 emissions of end users. End users include both consumers and business customers that use final products. Emissions from the use of goods belongs to category 11 in scope 3.



    Category 11 within Scope 3 emissions saw a significant increase over the previous year, primarily for two reasons. Firstly because HMBV included system components in 2023. Secondly, the increase in sales in 2023, compared to 2022, led to higher emissions resulting from product usage.

    Emissions from the waste disposal and treatment
    Category 12 does not apply to HMBV because the machinery is almost entirely stainless steel. As a result, at the end-of-life of a machine, it is only recycled at the local scrap yard, making it very difficult to calculate CO2 emissions.

    Emissions from the operation of assets
    Category 13 does not apply to HMBV is because HMBV does not act as lessor.

    Emissions from the operation of franchises
    Category 14 does not apply to HMBV is because HMBV does not have any franchises.

    Emissions associated with the reporting company's investments
    Category 15 in scope 3 includes scope 3 emissions associated with the reporting company's investments in the reporting year, not already included in scope 1 or scope 2. Category 15 does not apply to HMBV, this is because HMBV does not make investments for the purpose of making a profit.

    Energy & gas consumption (CSRD E1, Disclosure requirement 11)

    Energy consumption
    unitFY2022FY2023
    Fuel consumption from coal and coal products Wh    
    Fuel consumption from crude oil and petroleum products Wh    
    Fuel consumption from natural gas Wh 1.475.469.425,0 1.718.308.000,0
    Consumption of purchased or acquired electricity, heat, steam, and cooling from non-renewable sources Wh 321.322.760,0 299.397.260,0
    Total energy consumption from renewable sources, broken down Wh 632.157.240,0 685.462.142,0

    Consumption of self-generated non-fuel renewable energy

    Wh    

     

      

    In 2023, HMBV experienced a slight increase in its overall energy consumption compared to 2022. This uptick can be attributed to the company's increased sales volume during the year, which naturally led to higher energy usage. Meanwhile, gas consumption in 2023 remained roughly consistent with the levels observed in 2022.

    As illustrated above, 69.6% of HMBV's energy portfolio is currently sourced from renewable energy. In terms of future objectives for energy and gas consumption, HMBV has set the following targets: by the year 2030, the company aims to achieve an 80% reliance on renewable energy for its total energy consumption. Furthermore, by 2050, HMBV is committed to ensuring that 100% of its energy use is derived from renewable sources.

     

  • Water management
    WASH (CSRD E3, Disclosure requirement 13)

    Water supply, Access, Sanitation and Hygiene (WASH)
    unitFY2022FY2023
    Percentage of employees who have access to safely managed WASH services in the company facilities % 100 100
    Percentage of suppliers which have access to safely managed WASH services for their employees as a condition in their contract % 100 100

     

    Water consumption (CSRD E3, Disclosure requirement 9)

    Water performanceunitFY2022FY2023
    Total water withdrawals 5344 2843
    Total water consumption 1068 568
    Total water discharges 4272 2275

     



    Total weight of pollutants discharged into water

    Type of pollutantunitFY2022FY2023
    Cadmium g 0,3 0
    Chrome g 5 0,3
    Copper g 2 1,9
    Lead g 0,6 545,1
    Nickel g 1 0,7
    Zinc g 1 9,2
    Chlorides g 1860 326
    Sulfates g 820 2480
    Mercury * g 0 1.2
    Nitrogen g 500 235
    Fluorides g 4 45,9

    * Mercury is below the measurements level.

  • Material, chemicals and waste management
    Resource use (CSRD E5, Disclosure requirement 7)

    Resource use
    unitFY2022FY2023
    Amount in both absolute and percentage terms, of reused, recycled and renewable input materials used to manufacture the undertaking's primary products and services t 0 0
    Ratio in both absolute and percentage terms, of reused, recycled and renewable input materials used to manufacture the undertaking’s primary products and services % 0.0 0.0

     

    Waste

    HMBV has set the following targets regarding waste:

    The reduction of industrial waste with 2% each year. This contains all non-recyclable waste. HMBV strives to have an 80% recycling rate by 2030.

    Non-recyclable waste

     

     

    Total weight of hazardous materials

     

    Total weight of waste recovered (CSRD E5, Disclosure requirement 9)

    Waste and emissions
    unitFY2022FY2023
    For non-hazardous solid waste, the amount by weight diverted from disposal by recovery operation t 74 13

     

    The chart above represents recovered scrap iron

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